The stock of Aptos [APT] achieved a new peak in a span of five months during the previous 24 hours. This surge was fueled by a sustained bullish momentum that built upon the rally witnessed in September.
In a significant move, APT surpassed the $10 mark on Sunday, marking its first time above this threshold since April. This marked a considerable effort to break free from the lower range in which the stock had been stagnating for several months.
Following the crash witnessed between March and July, where the gains from the previous rally were wiped out, Aptos seems to have found its footing once again.
Despite the recent uptrend indicating strong demand, there is a likelihood of a pullback in the near future. This caution is warranted, especially after APT reached a new 5-month high of $10.68 within the last day, only to face renewed resistance suggesting a possible correction.
Currently trading at $10.08, there is a looming risk of a drop below the $10 mark once again, as the resistance to further upward movement becomes evident.
Historically, Aptos has faced resistance around the $10 level, hinting at a potential retracement to this level later in the week.
While a minor pullback might be in the offing, optimistic projections indicate that the cryptocurrency could see further gains before the year concludes.
Anticipating a Shift in APT Sentiment
Despite the recent bullish run of Aptos, there have been indications of a possible reversal in sentiment. Notably, the Relative Strength Index (RSI) has been forming lower highs over the past three weeks, signaling a bearish divergence between price and RSI.
This divergence implies a potential increase in selling pressure, suggesting a shift in momentum from buyers to sellers.
An analysis of the buying and selling volumes of APT indicated a rise in sell volume over the past 24 hours, surpassing the prevailing buy volume, possibly due to increasing profit-taking activities.
While signs point towards a growing selling pressure on APT, any retracement may be limited considering the substantial demand the cryptocurrency has been witnessing from the expanding Aptos network utility.
In the realm of network activity, Aptos TVL hit an all-time high of $730.71 million within the last day. Concurrently, the market capitalization of the network’s stablecoin surged past $256 million during the same period.
These metrics underline the increasing utility of the Aptos network, signaling higher confidence levels among investors. Such developments could act as a buffer against any significant downturn for APT.